PGC Newsletter 23,april, 2014


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PGC Newsletter 23,april, 2014

  1. 1. PGC NEWSLETTER23rd, April 2014 1 PGC NEWSLETTER 23rd, April 2014 THOUGHT OF THE DAY “Challenges are what make life interesting and overcoming them is what makes life meaning full” ECONOMIC NEWS  Suzuki Motor Corporation, the Japanese parent of Maruti Suzuki India Ltd (MSIL), might have to infuse nearly double the equity amount it had earlier planned to put into its proposed 100 per cent subsidiary for the Gujarat passenger vehicle factory.  ICAI is set to ban three of its members, including Price Waterhouse partners Srinivas Talluri and SGopalakrishnan, for life, with regard to the Rs. 14,000crore Satyam accounting scam.  Philippines signs airport pact with GMR despite legal issues CORPORATE LAW UPDATES  New Companies Act eases concerns over high pay. The Companies Act, 2013, says the board of directors of every listed company and such other classes of companies shall constitute the nomination and remuneration committee. This committee has to ensure the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate directors.  Global pharmaceutical giants GlaxoSmithKline and Novartis announced a massive three-way deal that will see the rivals exchanging asset portfolios, and merging the consumer health businesses in a new joint venture. RBI / TAX LAW UPDATE  RBI: As consumer banking frauds are on the rise, a Reserve Bank of India group has suggested the use of public key infrastructure in order to ensure a safe and secure payment system in the country.  The Reserve Bank of India has barred companies from repaying domestic loans through funds raised through external commercial from foreign branches of Indian banks.  RBI/2013-14/570RPCD.FID.BC.No. 96/12.01.011/ 20013-14 April 22, 2014 regarding Scaling up of the Business Correspondent (BC) Model – Issues in Cash Management.  RBI/2013-14/568DBOD.No.BP.BC.107/21.04.048/2013-14 in terms of which banks were permitted to extend Fund/Non-Fund based Credit Facilities toOverseas Joint Ventures / Wholly Owned Subsidiaries /Wholly owned Step-down Subsidiaries. MARKET UPDATES SENSEX 22,863.51 105.14 CNX NIFTY 6,840.60 25.25 DOLLAR/ RUPEE 61.01 0.24 MCX SILVER 42505.0 0.63 MCX GOLD 28,737.0 138.0 MCX CRUDE OIL 6226.0 0.02 Dow Jones Industrial Average 16,514.37 65.12 Nasdaq Composite 4161.46 39.91
  2. 2. PGC NEWSLETTER23rd, April 2014 2 COMPANIES ACT,2013 CORPORATE SOCIAL RESPONSIBILITY • Every Company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year to constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director . • The Board’s report to disclose the composition of the Corporate Social Responsibility Committee • Committee shall formulate and recommend to the Board, a CSR Policy indicating the activity or activities to be undertaken by the Company as specified in Schedule VII of the Law • Recommend the amount of expenditure to be incurred on the activities above and • Monitor the Corporate Social Responsibility Policy of the Company from time to time • Based on recommendations from CSR Committee, Board of such Company to approve the CSR Policy for the Company and disclose contents of such Policy in its report and on the Company’s website • Every year in the Board’s Report, details about the policy developed and implemented by the Company on CSR initiatives taken during the year to be included • Board shall ensure that at least two per cent of average net profits of the Company made during three immediately preceding financial years is spent in every financial year on such policy • For spending the amount earmarked for CSR activities the Company shall give preference to the local area and areas around it where it operates • If a Company fails to provide or spend such amount, the Board to specify reasons for not spending the amount in its report • Companies require to comply with CSR shall give additional Information by way of notes to the Statement of Profit and Loss regarding aggregate expenditure incurred on corporate social responsibility activities.